Ericsson Signs HSDPA and Managed Services Extension Contract With Maxis.

STOCKHOLM, Sweden -- Malaysian operator Maxis has selected Ericsson (NASDAQ:ERICY) to expand its 3G network and upgrade it to HSDPA. The contract also includes an extension of Maxis' and Ericsson's Managed Services contract, signed earlier this year. Under the contract, Ericsson will be responsible for the entire operation and management of the 3G-radio network.

With this agreement, identified under Phase II of Maxis' 3G plans, Ericsson will supply a significant part of Maxis' radio network infrastructure.

Ericsson's work will take Maxis' 3G network to a large portion of the Klang Valley and to the southern city of Johor Baru in Malaysia. Ericsson will also provide Maxis with an HSDPA upgrade that will enable Maxis to offer more advanced mobile broadband services focusing on user experience and enhanced systems capacity.

Ericsson deployed the first phase of Maxis' 3G network in the Klang Valley and is already operating and maintaining its existing 3G network.

Edward Ying, Chief Operating Officer of Maxis, says: "It has been our priority from the beginning to provide a quality 3G network and services within high-data-usage areas. Now we need to expand our 3G network to cover more areas and customers.

"Ericsson has proven to be invaluable in helping us launch and deliver new 3G services to our customers, and we are confident that this partnership will be further enhanced through Phase II of our 3G implementation programme," he adds.

Jan Signell, President of Ericsson South East Asia and Country Manager of Ericsson Malaysia, says: "This agreement reinforces the strong partnership between Ericsson and Maxis. Our teams have been working very closely over the past two years, and have come a long way in delivering 3G coverage to Maxis' customers."

HSDPA is the next evolutionary step of WCDMA, offering peak data downlink rates of up to 14 Mbps and more than twice the system capacity, without requiring additional radio spectrum or radio coverage.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

Read more at http://www.ericsson.com

About Ericsson Managed Services

Ericsson has the telecom industry's most comprehensive managed services offerings, covering management of day-to-day operations of a customer's network and can also include managed capacity for efficient network build out wherever and whenever needed, as well as hosting of applications and content management. As the undisputed industry leader in managed services, Ericsson has officially announced well over 50 managed services contracts with operators worldwide since 2002. Excluding hosting, Ericsson is managing networks that, together, serve more than 43 million subscribers worldwide.

About Maxis Communications Berhad

Maxis is Malaysia's premier telecommunications company and a market leader, providing high-quality voice and data services to more than 6.6 million customers. Its mobile post-paid and pre-paid services are offered under the Maxis and Hotlink brands respectively. The company has achieved its leading position through a clear strategy of developing premium brands, providing quality network and customer services, as well as introducing innovative services and products. In support of its mobile business, Maxis also operates an international gateway, as well as a domestic fixed-line network, which offers voice and data services to business customers. Its broadband infrastructure includes fiber optic, microwave and VSAT technologies.